Microsoft Locks in 27% OpenAI Ownership as ChatGPT Maker Completes Corporate Makeover

After nearly a year of tense negotiations, the AI power couple has finally signed their prenup. OpenAI handed its longtime partner MicrosoftMSFT

a 27% ownership stake valued at ~$135B as part of its corporate restructuring into a traditional for-profit entity. The deal removes major uncertainty that had plagued both companies and clears the runway for OpenAI’s eventual IPO.

• Microsoft will keep access to OpenAI’s AI models through 2032 and continue earning 20% of revenue until AGI is achieved, as verified by an independent panel.
• The OpenAI Foundation controls the new OpenAI Group PBC with a 26% stake worth about $130B, plus warrants tied to a tenfold valuation increase within 15 years.

The fine print: Delaware Attorney General Kathy Jennings said her office won’t oppose the restructuring after securing “primacy for safety and security” commitments. Meanwhile, Microsoft loses its exclusive cloud and first-refusal rights, though OpenAI pledged another $250B to Azure. Still, Bloomberg Intelligence analyst Anurag Rana noted that Microsoft retaining OpenAI’s IP rights through 2032 “is the most important aspect,” as it builds its own models while integrating OpenAI and Anthropic tech into Copilot.